Well, how much is almost all and how much smoothness is enough?
This is the question Physicist has to answer. As a result, he either becomes a hero or a laughingstock.
As I said earlier, in some contexts a failure of analyticity is considered a singularity, and analyticity often fails somewhere with many physical situations (even say like, walking around a room).
But that has never stopped Physicists from doing it anyway - or they never thought about it and then it never bothered them. Sometimes I think it is good not to know too much about Maths. Take a look at the history of the scalar diffraction theory by Kirchoff for example. In short, Kirchoff formulated the theory with a quite grave mathematical error, but the theory gave correct results anyhow. The modification by Sommerfeld (and Rayleigh?) and some other people put it on the sound mathematical basis, but generality was restricted.
Mika